Intelligent Systems Corporation
(NYSE MKT: INS)
Attention investors who purchased shares of Intelligent Systems Corporation between January 23, 2019 and May 29, 2019:
Rigrodsky & Long is investigating claims brought in a securities fraud class action complaint against Intelligent Systems Corporation ("Intelligent Systems") concerning whether Intelligent Systems and certain of the Company's directors and/or officers made materially false and misleading statements and failed to disclose materially adverse facts during the period January 23, 2019 and May 29, 2019, inclusive (the "Class Period"), concerning Intelligent Systems' business, operations and prospects. These misrepresentations and omissions artificially inflated the price of Intelligent Systems' stock throughout the Class Period.
Rigrodsky & Long, P.A. announces that a complaint has been filed in the United States District Court for the Eastern District of New York on behalf of all persons or entities that purchased the common stock of Intelligent Systems Corporation (“Intelligent Systems” or the “Company”) (NYSE AMERICAN: INS) between January 23, 2019 and May 29, 2019, inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased shares of Intelligent Systems during the Class Period, or purchased shares prior to the Class Period and still hold Intelligent Systems, and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, P.A., 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by telephone at (888) 969-4242, by e-mail at firstname.lastname@example.org, or at http://rigrodskylong.com/contact-us/.
The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public: (1) that Petit, the “financial expert” on Intelligent Systems’ Audit Committee engaged in accounting fraud as the CEO of MiMedx Group, Inc.; (2) that the Company’s CEO, Leland Strange, engaged in undisclosed related-party transactions with Petit and others and had an undisclosed personal relationship with the Company’s auditor; (3) that the Company had its employees set up or take control of shell companies in Asia so they could partake in undisclosed related-party transactions for the purpose of either fabricating revenue for the Company and/or siphoning money out of the Company; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. As a result of defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on May 30, 2019, pre-market, Grizzly Research LLC issued a report entitled "Intelligent Systems Corp: Material Undisclosed Related Party Transactions Cast Doubt on the Integrity of Financial Statements." The report presented evidence that Intelligent Systems "has its employees set up or take control of undisclosed shell companies in Asia, who then partake in undisclosed related party transactions with [Intelligent Systems] intended to either round-trip revenue back to [Intelligent Systems] or siphon money out of the company." The report further stated that "there is a possibility that all revenue growth since January 2018 has been a result of undisclosed round-trip transactions with Indian related parties."
On this news, shares of Intelligent Systems declined over 20%, closing at $26.99 per share on May 30, 2019, on heavy trading volume.
If you wish to serve as lead plaintiff, you must move the Court no later than September 9, 2019. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Rigrodsky & Long, P.A., with offices in Delaware, New York, and California, has recovered hundreds of millions of dollars on behalf of investors and achieved substantial corporate governance reforms in numerous cases nationwide, including federal securities fraud actions, shareholder class actions, and shareholder derivative actions.
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